Sam Martin

<div id="highlights-block_617725d07bf3f" class="highlights">
        <ul>
                <li>CPI comes in at 6.2%, marking the largest print in the last 30 years</li>
                <li>BTC hits an ATH of $69,000 before a cascade of liquidations spurred a sell-off</li>
            </ul>
    
</div>



<p>The CPI came in hot at 6.2% versus the expected 5.9%. </p>



<p><meta charset="utf-8">Bond yields rallied as investors got nervous about maintaining their purchasing power. </p>



<p>BTC raced higher after the CPI numbers were released. </p>



<p>A cascade of liquidations sent BTC lower after the morning rally, seeing prices fall below $64,000. </p>



<p>Chinese real estate giant, Evergrande has paid part of $148.13 million interest due today according to a Bloomberg report. However, Deutsche Marktscreening Agentur (DMSA) has begun bankruptcy proceedings. The news led to risk-off sentiment into the close for equities, some commodities, and digital assets.  </p>



<p>YGG partners with Genopets, a blockchain-based game that combines play-to-earn with move-to-earn mechanics to reward users who exercise. </p>



<h3 class="wp-block-heading"><strong>Latest in Macro:</strong></h3>



<ul class="wp-block-list"><li>S&amp;P 500: 4,646, -.82%</li><li>NASDAQ: 15,622, -1.66%</li><li>Gold: $1,850, +.92%</li><li>WTI Crude Oil: $81.30, -3.39%</li><li>10-Year Treasury: 1.57%, +.121%</li></ul>



<h3 class="wp-block-heading"><strong>Latest in Crypto:</strong></h3>



<ul class="wp-block-list"><li>BTC: $64,755, -3.85%</li><li>ETH: $4,602, -3.50%</li><li>ETH/BTC: .0709, +.39%</li><li>BTC.D: 43.99%, +.26%</li></ul>



<h3 class="wp-block-heading">Consumer Price Index (CPI)</h3>



<p>Today the <meta charset="utf-8">Consumer Price Index (CPI) came in at 6.2% year-over-year versus analysts&#8217; consensus of 5.9% ahead of the report. This marks the largest CPI reading in more than 30 years, <a href="https://www.cnbc.com/2021/11/10/consumer-price-index-october.html" target="_blank" rel="noreferrer noopener">according</a> to CNBC.</p>



<p>&#8220;We’re likely going to remain in an inflationary environment for at least another quarter or two due to rent increases, and we’ll need to assess as more data comes in as to what extent it will remain in place beyond that point or take a break. Inflation has thus far rolled from category to category, with specific price spikes and shortages in certain areas at different times, rather than altogether. There’s still a clear ongoing labor shortage.&#8221; <a href="https://www.lynalden.com/premium-2021-10-31/" target="_blank" rel="noreferrer noopener">wrote</a> investment strategist Lyn Alden. </p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="407" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/inflation-1024x407.jpg" alt="" class="wp-image-10952" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/inflation-1024x407.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/inflation-1024x407.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/inflation-1024x407.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/inflation-1024x407.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/inflation-1024x407.jpg?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/inflation-1024x407.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/inflation-1024x407.jpg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/inflation-1024x407.jpg?w=1095 1095w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /></figure>



<p>The Employment Cost Index (ECI), a quarterly economic series published by the Bureau of Labor Statistics that details the&nbsp;growth of total employee compensation, is often a leading indicator for CPI. When looking at the two metrics on the same chart, it appears that inflation may remain hot for the next quarter or two. </p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="710" height="448" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/@MikaelSarwe.png" alt="" class="wp-image-10953" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/@MikaelSarwe.png?w=710 710w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/@MikaelSarwe.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/@MikaelSarwe.png?w=407 407w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/@MikaelSarwe.png?w=414 414w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/@MikaelSarwe.png?w=347 347w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/@MikaelSarwe.png?w=80 80w" sizes="auto, (max-width: 710px) 100vw, 710px" /><figcaption>Source: @MikaelSarwe</figcaption></figure></div>



<h3 class="wp-block-heading">Bonds sell-off</h3>



<p>Bonds sold off and consequently led to a rally in yields due to the hot inflation numbers. Some industry experts <a href="https://twitter.com/CaitlinLong_/status/1458507405675880452?s=20" target="_blank" rel="noreferrer noopener">believe</a> the Fed&#8217;s recently announced taper set to begin in December is contributing to the rally in rates. Jerome Powell <a href="https://www.investopedia.com/fed-will-start-tapering-in-december-2021-5208392" target="_blank" rel="noreferrer noopener">stated</a> that these monthly asset purchases initially will be reduced by $10 billion for Treasury securities and $5 billion for agency securities. That still leaves a total of $105 billion of asset purchases per month on behalf of the Fed. </p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="670" height="450" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/chart-2-1.jpeg" alt="" class="wp-image-10957" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/chart-2-1.jpeg?w=670 670w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/chart-2-1.jpeg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/chart-2-1.jpeg?w=383 383w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/chart-2-1.jpeg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/chart-2-1.jpeg?w=326 326w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/chart-2-1.jpeg?w=80 80w" sizes="auto, (max-width: 670px) 100vw, 670px" /></figure></div>



<p>Founder of FFTT, Luke Gromen, has been <a href="https://twitter.com/LukeGromen/status/1458523654703226885?s=20" target="_blank" rel="noreferrer noopener">warning</a> for some time that the Fed is &#8220;trying to ride 2 horses with one ass.&#8221; While US expenditures are far outpacing tax receipts and debt levels remain elevated, the Fed appears to be trying to inflate the debt away without spooking bond investors. </p>



<p>When inflation is running higher than the prevailing rates on bonds, the holders of said bonds are losing purchasing power because their return is not outpacing the rising cost of goods and services. </p>



<p>&#8220;This is the widest gap on record between the Fed&#8217;s short-term interest rate setting, and year-over-year CPI, including the 1970s. (We would have to go back to the 1940s to find a similar situation.),&#8221; <a href="https://twitter.com/LynAldenContact/status/1458462580025008129?s=20" target="_blank" rel="noreferrer noopener">according</a> to Lyn Alden. </p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="748" height="450" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/FD1_erNXEAMUpk5.png" alt="" class="wp-image-10958" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/FD1_erNXEAMUpk5.png?w=748 748w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/FD1_erNXEAMUpk5.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/FD1_erNXEAMUpk5.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/FD1_erNXEAMUpk5.png?w=434 434w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/FD1_erNXEAMUpk5.png?w=364 364w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/FD1_erNXEAMUpk5.png?w=80 80w" sizes="auto, (max-width: 748px) 100vw, 748px" /></figure>



<h3 class="wp-block-heading">Bitcoin</h3>



<p>&#8220;The higher-than-expected US October CPI print is bullish for bitcoin,&#8221; Noelle Acheson, head of market insights at Genesis, told Blockworks. &#8220;Rising inflation with persistently low rates is a good tailwind for non-yielding inflation hedges. The macro situation is especially interesting for BTC in that a market in which you have bonds and equities rallying is one in which traditional investment theories no longer work.&#8221;</p>



<p>BTC rallied to a new ATH of $69,000 right after the CPI print, which liquidated a large number of shorts. The opposite occurred later in the day as equities closed weak, forcing a cascade of liquidations amongst longs. It appears as though the leveraged traders never learn their lesson. </p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="374" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/bybt_chart-3-1-1024x374.png" alt="" class="wp-image-10961" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/bybt_chart-3-1-1024x374.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/bybt_chart-3-1-1024x374.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/bybt_chart-3-1-1024x374.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/bybt_chart-3-1-1024x374.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/bybt_chart-3-1-1024x374.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/bybt_chart-3-1-1024x374.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/bybt_chart-3-1-1024x374.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/bybt_chart-3-1-1024x374.png?w=1370 1370w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /></figure></div>



<p>Perpetual funding rates ahead of the price correction were creeping above .05% on numerous exchanges, <a href="https://app.laevitas.ch/dashboard/btc/futures/basis" target="_blank" rel="noreferrer noopener">according</a> to data from laevitas.ch. The following chart shows that historically when funding rates reach north of .05%, corrections often follow. Although during bull markets it is not uncommon for funding rates to remain extremely elevated for extended periods of time. </p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="512" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/FD2u-RzVUAQJDSV-1024x512.jpg" alt="" class="wp-image-10962" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/FD2u-RzVUAQJDSV-1024x512.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/FD2u-RzVUAQJDSV-1024x512.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/FD2u-RzVUAQJDSV-1024x512.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/FD2u-RzVUAQJDSV-1024x512.jpg?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/FD2u-RzVUAQJDSV-1024x512.jpg?w=2048 2048w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/FD2u-RzVUAQJDSV-1024x512.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/FD2u-RzVUAQJDSV-1024x512.jpg?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/FD2u-RzVUAQJDSV-1024x512.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/FD2u-RzVUAQJDSV-1024x512.jpg?w=80 80w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Source Jarvis Labs</figcaption></figure></div>



<p>The BTC move also coincided with early <a href="https://cms.blockworks.co/evergrande-defaults-on-148-13m-bankruptcy-proceedings-begin/" target="_blank" rel="noreferrer noopener">reports</a> that the Chinese real estate giant, Evergrande, had missed its interest payment due on November 10. Later, <meta charset="utf-8">a source close to the matter at Clearstream reported that the company had made three payments on its $148.13 million debt. The news seemed to stir risk-off sentiment in the markets, leading to a fall in equities and digital assets across the board. </p>



<h3 class="wp-block-heading">Non-Fungible Tokens (NFTs)</h3>



<p><a href="https://www.genopets.me" target="_blank" rel="noreferrer noopener">Genopets</a>, a Solana-based game, is partnering with Yield Guild Games to bring its assets to the YGG community. The Genopets game innovates by combining play-to-earn and newly coined &#8216;move-to-earn&#8217; to allow users to earn via both playing a game and exercising, <a href="https://medium.com/yield-guild-games/yield-guild-games-purchases-habitats-in-move-to-earn-solana-game-genopets-902653cd410e" target="_blank" rel="noreferrer noopener">according</a> to a company-released medium article.  </p>



<p>Trading data from <a href="https://opensea.io/rankings" target="_blank" rel="noreferrer noopener">OpenSea</a> and <a href="https://solanalysis.com" target="_blank" rel="noreferrer noopener">Solanalysis</a> of some of the top Solana and Ethereum projects can be found in the photos below:</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="341" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-10-at-5.29.27-PM-1024x341.png" alt="" class="wp-image-10964" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-10-at-5.29.27-PM-1024x341.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-10-at-5.29.27-PM-1024x341.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-10-at-5.29.27-PM-1024x341.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-10-at-5.29.27-PM-1024x341.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-10-at-5.29.27-PM-1024x341.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-10-at-5.29.27-PM-1024x341.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-10-at-5.29.27-PM-1024x341.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-10-at-5.29.27-PM-1024x341.png?w=1225 1225w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Top Ethereum Projects</figcaption></figure></div>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="287" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-10-at-5.29.38-PM-1024x287.png" alt="" class="wp-image-10965" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-10-at-5.29.38-PM-1024x287.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-10-at-5.29.38-PM-1024x287.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-10-at-5.29.38-PM-1024x287.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-10-at-5.29.38-PM-1024x287.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-10-at-5.29.38-PM-1024x287.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-10-at-5.29.38-PM-1024x287.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-10-at-5.29.38-PM-1024x287.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-10-at-5.29.38-PM-1024x287.png?w=1198 1198w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Top Solana Projects </figcaption></figure></div>



<p>If you made it this far, thanks for reading! I am looking forward to catching up tomorrow.</p>



<hr class="wp-block-separator"/>



<p><strong>Get the day’s top crypto news and insights delivered to your inbox every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.</strong></p>



<hr class="wp-block-separator"/>


Bitcoin

Bonds Sell-off on 6.2% CPI Print; Bitcoin Liquidations Spur Correction: Markets Wrap

Morgan Chittum

<div id="highlights-block_616dd8e5abd47" class="highlights">
        <ul>
                <li>Genopets allows users to do various real-world physical exercises to earn rewards within the game that players can later cash out</li>
                <li>Pantera Capital and Konvoy Ventures co-led the round with participation from Alameda Research and CMS Holdings</li>
            </ul>
    
</div>



<p>Genopets, a non-fungible token (NFT) game, raised $8.3 million in seed round funding, the company <a href="https://medium.com/@genopets/genopets-raises-8-3m-in-seed-round-funding-to-bridge-the-physical-and-digital-world-d884adc2cc97" target="_blank" rel="noreferrer noopener">announced</a> on Monday. Co-led by Pantera Capital and Konvoy Ventures, <a href="https://www.genopets.me/" target="_blank" rel="noreferrer noopener">Genopets</a> said the money will go towards their mission “to bridge the physical and digital world.”</p>



<p>Powered by Solana, Genopets is an NFT project that encourages users to do various real-world exercises to earn rewards within the game — rewards that players can later cash out. Advertised as the “world’s first play-to-move game”, Genopets aims to provide “passive income to individuals as an incentive to stay physically active”, according to a statement from CEO Albert Chen.</p>



<p>“Genopets is a liquid digital asset representation of a gamer’s physical activity in the real world. It sits at the intersection of gaming, play-to-earn, and physical activity,” Josh Chapman, Managing Partner at Konvoy Ventures, said. “This platform connects a gamer’s real-world steps with their progression, customization, and value creation in the Genopet universe.”</p>



<p>The fundraising announcement comes amid billowing demand for NFT gaming. According to <a href="https://dappradar.com/blog/dapp-industry-report-q3-2021-overview/#high" target="_blank" rel="noreferrer noopener">a Dapp Industry report</a>, the “play-to-earn movement” has been one of the key forces behind the NFT space’s astronomical growth.</p>



<p>Other participants in the round include Alameda Research, Solana Capital, DeFi Alliance, Yield Guild Games, CMS Holdings, CMT Digital and others. Genopets’ angel investors include Twitch Co-founder Kevin Lin, Quantstamp CEO Richard Ma and former Nike executive Melanie Strong.&nbsp;</p>



<p>“If I were to sum up Q3 in a single word, it would be ‘diversification’,” Modesta Jurgelevičienè, Head of Finance and Research at DappRadar, said in the quarterly report.</p>



<p></p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"><p><strong>“The play-to-earn movement became a key driver in the space, NFTs turned towards greater utility and secured record volumes.”</strong>&nbsp;</p></blockquote>



<p>The sector reportedly brought in 754,000 daily unique active wallets (UAW), a hike of 140% from the previous quarter.&nbsp;</p>



<p>“Play-to-Earn pinpointed an intersection of gaming and blockchain that has struck a chord with users: earning real money proportional to in-game performance,” Paul Veradittakit, Partner at Pantera Capital, said.</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"><p><strong>“This is a trend we’ve been monitoring very closely; we believe it’s going to fundamentally transform the established gaming industry and onboard millions of users into the crypto ecosystem.”</strong></p></blockquote>



<p>From free-to-play mobile gaming, to the move-to-play mechanics exemplified by the Nintendo Wii, Pokemon Go, and virtual reality, combined with blockchain’s play-to-earn incentives, Genopets&#8217; Move-to-Earn model intertwines them all in what the company calls “gamified self-care.”</p>



<p>But will it move consumers to play?</p>
